Prime + 6%
In the Commercial Finance Business, it is a customary courtesy rate between Financial Institutions to pay each other for participation in a finance project. The going rate for participation in a business project is the prime interest rate plus four-six percent. Just for your information, run a Google search for “prime plus six” and count the offers.
One Financial Institution will service the project and the other puts up the money. Many Factors have a working agreement between one or more banks to borrow money using their Accounts Receivable as collateral for money.
The Factor finds and qualifies the accounts, and presents them in a package for advancing Bank Funds to the Factor. The Factor then advances a % of the funds to the Client Company and the Factor then receives the proceeds from the Accounts Receivable. These transactions are going on every day in the Business world. This could be classified as a Business Man’s Risk type of investment.
Accounts Receivables have a cash value, if the purchasing company has good credit. This transaction is the basis for our Investment Clubs Fundings of American Businesses. The Banks have stopped doing this as most are only Branches of some out of State Banking System. American Business has stopped growing because of lack of commercial finance.
It is our objective to find these type of American Businesses and help fund their growth. These Accounts Receivables funds will turn over 3-4 times per year. It is the same dollars going into the business as raw materials and coming out as Accounts Receivables.
We are at RISK during the processing time and again when it becomes an Account Receivable. We have other assets and cash accounts in place the eliminate most of the risk from the entire process.
In addition to owning the accounts receivable, we also own all paid for assets of the business plus the owners are liable to pay off the principle of the investment.
We could possibly be earning more than our original estimation or less. For you the investor, we guarantee the Prime +6% rate of return. to get more information, call:
Jerry Hill @ 469-556-1776 or Terry Paris @ 512-740-3215